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Compute the rate of inflation using money supply and the real GDP.

1) If velocity is unchanged and the money supply grows by 13% and the real GDP grows by 4%, what is the rate of inflation?

2)If velocity is constant and real GDP grows by 2.5% per year, how much would the Money Supply grow to have zero inflation?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M921683

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